2010 Dividend Exchange Rates

16 May 2011

Dragon Oil plc ("Dragon Oil" or the "Company")

Notice of dividend currency exchange rates - 2010 final dividend

On 22 February 2011, Dragon Oil announced a full-year maiden dividend of US cents 14 per share for 2010. Shareholders (other than shareholders holding their shares within CREST) with registered addresses in the UK are to be paid their dividends in pounds sterling. Those with registered addresses in European countries, which have adopted the euro, are to be paid in euro. Shareholders with registered addresses in all other countries are to be paid in US dollars. Shareholders were, however, given the option to elect to be paid their dividends in a currency other than their default currency, and were given a choice of US dollars, euro or pounds sterling provided such election was received by the Company's registrars by 3 May 2011.

As referred to in that announcement, the exchange rate for the pound sterling or euro amounts payable was determined by reference to the exchange rates applicable to the US dollar on the closest practicable date, being 16 May 2011, to the dividend payment date.

The following table details the currency exchange rates applicable for the 2010 full-year dividend:

The final dividend is to be paid on 27 May 2011 subject to shareholder approval at the upcoming AGM to be held on 18 May 2011.